What does the Beef O Bradys Area Development Agreement contain regarding development?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
roval which will not be unreasonably withheld. We also have the right to refuse to grant a franchise for a proposed Family Sports Pub if you do not meet financial criteria established by us.
Your Area Development Agreement will contain a Minimum Development Quota specifying a series of "Development Periods", the number of Family Sports Pubs you must open during each Development Period and the cumulative number of Family Sports Pubs you must have opened through the end of the Development Period in question. Family Sports Pubs will not count towards meeting the Minimum Development Quota for any Development Period until they have been fully constructed, developed and have opened operations in accordance with their respective franchise agreements with us. We determine if any Family Sports Pub has "opened" for purposes of meeting the Development Schedule and any Minimum Development Quota for any Development Period. If a Family Sports Pub is permanently closed after having been opened, you must develop and open a substitute Family Sports Pub within one year from the date of its permanent closing separate and apart from the Development Schedule.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets we own, or from other channels of distribution or competitive brands we control.
Rights We Reserve: Area Development Agreement. We (and our affiliates) may, in our sole judgment:
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- establish ourselves, and grant to franchisees the right to establish, Family Sports Pubs anywhere outside the Development Area, on the terms and conditions we consider appropriate (including immediately proximate to the border of the Development Area);
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- operate ourselves, and grant franchises to others to operate, within the Development Area, any businesses, whether under the Marks or otherwise, except for a Family Sports Pub;
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- operate and grant franchises to others to operate businesses, or provide other services, whether inside or outside the Development Area, that do not use any of the Marks;
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- market and sell, inside and outside of the Development Area, through channels of distribution other than traditional Family Sports Pubs (i.e., through mail orders; internet, e-commerce; grocery, retail, convenience stores or kiosks; or, catalog sales telemarketing or other direct marketing), or through special purpose sites including sites at which access to the general public is limited (i.e., golf courses, school campuses, colleges, universities, on-campus food outlets, train stations, casinos, airports, stadiums, theme parks, military bases, etc.) goods and services competitive with goods and services offered by Family Sports Pubs, under the Marks or under other trade names, service marks or trademarks;
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Source: Item 12 — TERRITORY. (FDD pages 39–42)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the Area Development Agreement outlines the development schedule and minimum quotas that a franchisee must meet. The agreement specifies development periods and the number of Family Sports Pubs a franchisee is required to open within each period, as well as the cumulative number of pubs that must be operational by the end of each period. A Family Sports Pub is only counted towards the quota once it is fully constructed, developed, and opened according to the franchise agreement. Beef O Bradys determines when a pub is considered "opened" for the purpose of meeting these development requirements. If a pub closes permanently, the franchisee is typically required to open a substitute location within one year, separate from the original development schedule.
Beef O Bradys retains significant rights regarding the Area Development Agreement. If a franchisee fails to meet the Minimum Development Quota, Beef O Bradys has several options. They can terminate the agreement, operate or franchise other pubs within the development area, grant an extension with a non-refundable fee, or reduce the development area and schedule to a size they deem the franchisee capable of managing. The extension fee is equal to the balance of the franchise fees for the number of Family Sports Pubs that are behind schedule but not yet under construction.
Prospective franchisees should be aware that Beef O Bradys may also grant franchises for Brass Tap Bars, which are affiliated with Beef O Bradys, within the development area. Any conflicts between franchisees of Beef O Bradys and Brass Tap will be resolved on a case-by-case basis. Additionally, franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other brands controlled by Beef O Bradys. This lack of exclusivity and potential for competition should be carefully considered before entering into an Area Development Agreement with Beef O Bradys.